Indiana Code
Chapter 5. Remedies and Penalties
24-4.5-5-204. Debtor's Right to Rescind; Accruing Interest Prohibited During Rescission Period; Disbursement of Proceeds

Sec. 204. Debtor's Right to Rescind Certain Transactions — (1) A violation by a creditor of Section 125 of the Consumer Credit Protection Act (as defined in IC 24-4.5-1-302) concerning the debtor's right to rescind a transaction that is a consumer credit sale or a consumer loan constitutes a violation of IC 24-4.5. A creditor may not accrue interest during the period when a consumer loan may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).
(2) A creditor must make available for disbursement the proceeds of a transaction subject to subsection (1) on the later of:
(A) the date the creditor is reasonably satisfied that the consumer has not rescinded the transaction; or
(B) the first business day after the expiration of the rescission period under subsection (1).
Formerly: Acts 1971, P.L.366, SEC.6. As amended by Acts 1982, P.L.149, SEC.7; P.L.122-1994, SEC.32; P.L.23-2000, SEC.9; P.L.159-2017, SEC.17; P.L.86-2018, SEC.195.